Money transfer on mind? RTGS timings revised by RBI; 5 things you might have missed

In another bid to promote digital transactions in the country, the Reserve Bank of India (RBI) has extended the customer transactions timing for Real Time Gross Settlement (RTGS) system by an hour. After the implementation of the new timings, you can transfer money through the RTGS system from 7 am instead of 8 am from 26 August, the RBI said on Wednesday. "In order to increase the availability of the RTGS system, it has been decided to extend the operating hours of RTGS and commence operations for customers and banks from 7:00 am," the RBI said in a notification.

There is a chance that you might have not paid full attention to the RBI circular and might have missed out on some important details. Here are five such important points you must know - 

1. For now, the RTGS transactions can be completed for customer transactions between 8 am to 6 pm and for inter-bank transactions from 8 am to 7:45 pm.

2. This mode of transaction is primarily designed for high-value transactions as the minimum amount to be remitted through RTGS is Rs 2 lakh with no maximum limit.

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3. The new rules would allow you to complete these transactions from 7 am with initial cut-off for customer transactions set at 6 pm and final-cut off for inter-bank transactions set for 7:45 pm.

4. The new extended customer transactions timing will be applicable from August 26.

5. In this mode, the bank receives the instruction to transfer funds immediately when you carry out the transaction, and the transfer is instantaneous.

This comes as the second major announcement from RBI in the recent times after it decided to allow round-the-clock fund transfers through the National Electronic Funds Transfer (NEFT) from December this yea. The step was again taken to promote digital transactions. As of now, NEFT is available for customers from 8 am to 7 pm on all working days with the exception of second and fourth Saturdays of a month and banking holidays. 

The NEFT system is used for fund transfers of up to Rs 2 lakh.